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Mayor Eric Adams' administration is set to enforce some of the nation’s first penalties against commercial property owners failing to reduce carbon emissions as mandated by New York City’s Local Law 97. Speaking at Bisnow’s National Sustainability Conference, Department of Buildings Chief Sustainability Officer Gina Bocra warned property owners to initiate decarbonization efforts immediately to avoid fines starting next year.

Despite earlier guidance suggesting that "good faith efforts" could prevent fines, Bocra emphasized that insufficient action will result in penalties. Local Law 97, effective since January, targets buildings over 25,000 square feet, imposing a $268 fine for every ton of emissions exceeding limits. By 2030, properties must cut emissions by 40% from 2006 levels, with penalties set to increase.

Urban Green Council data shows 88% of buildings are on track for 2024 benchmarks, but only 35% align with 2030 goals. The Real Estate Board of New York estimates that by 2030, non-compliant properties could face cumulative fines of $900 million annually.

Penalties will also apply for late emissions reports, adding significant financial pressure. Experts at the event highlighted the need for proactive, phased upgrades to aging buildings to meet sustainability standards and avoid fines.

Local Law 97 has heightened awareness and urgency among property owners regarding energy usage and carbon emissions, marking a critical step toward sustainable real estate practices in New York City.

Original article posted on June 27, 2024